Which of the Following Items Is Reported in Neither the Income

question 23

Multiple Choice

Which of the following items is reported in neither the income statement nor the statement of cash flows?

• A) Sale of marketable securities at a loss.
• B) Sale of marketable securities at a gain.
• C) Adjustment of available-for-sale marketable securities owned to current market value at balance sheet date.
• D) Investment of excess cash in marketable securities.

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Definitions:

FICA Taxes Payable

Taxes that are due on employee and employer contributions to Social Security and Medicare.

Federal Income Taxes Payable

A liability account on the balance sheet representing the amount of income taxes a company owes to the government.

State Income Taxes Payable

This is a liability on a company's balance sheet representing the amount of income taxes owed to various state governments.

Payroll Liability Accounts

These accounts on the balance sheet represent obligations related to employee compensation, including taxes withheld, benefits, and wages yet to be paid.